Standard Operating Procedures
University of Texas Medical Branch-Galveston
School of Health Professions
Faculty Service Research and Development Plan
I. Nature of Faculty Practice and Sources of Income
Earnings generated by School of Health Professions faculty (faculty with more than
50% appointment in SHP) from either inside or outside of the University of Texas
Medical Branch (UTMB) system may qualify as sources of supplemental salary income for the Faculty Service Research and Development Plan (FSRDP), hereafter called the Faculty Practice Plan.
Earnings that qualify as Faculty Practice Plan income consist of professional fees charged for direct care services, consultations, or educational services provided by full-time faculty members in the School of Health Professions.
Additional sources of Faculty Practice Plan income include fees for all expert testimony at court appearances and depositions and gifts of cash or cash equivalents (as permitted by state law or The University of Texas System of
Institution policy or rule) in the context of professional or direct-care activities ( Article
VII, Amended and Restated Bylaws of the University of Texas Medical Branch at
Galveston School of Health Professions FSRDP Faculty Practice Plan , p. 12).
II. Exceptions to Faculty Practice Plan Income
The following are not sources of professional income that fall within the Faculty
Practice Plan and may be retained by the faculty member ( Article VII, Amended and
Restated Bylaws of the University of Texas Medical Branch at Galveston School of
Health Professions FSRDP Faculty Practice Plan , pp. 12-13).
Honoraria, defined as payments by entities outside The University of Texas
System for occasional lectures and similar public appearances beyond normal academic responsibilities to the Institution, that are not in return for other services related to the Member’s appointment to the faculty and that are in compliance with Section 36.07 of the Texas Penal Code, whether given directly or indirectly;
Royalties, defined as shares or proceeds for contributions as authors or inventors, as permitted under The University of Texas System’s copyright and patent policies;
Payment for editing scientific publications;
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Prizes, defined as gifts in recognition of personal achievement and not for services rendered;
Income from a profession or activity unrelated to the training and experience which is the individual’s qualification for appointment to the faculty, as determined by the department chair in consultation with the President; and
Tangible and non-tangible non-cash gifts, only as permitted by state law or The
University of Texas System or Institution policy or rule.
Salary recovery dollars from grants.
III. Memoranda of Agreement
Potential earnings from the Faculty Practice Plan are included within Part C of the
Memorandum of Appointment (MOA) of the faculty member (Appendix B). The
Faculty Compensation Plan follows in Appendix C.
IV. Liability for Professional Practice within the Practice Plan
Faculty members engaged in the Faculty Practice Plan have coverage under the
Texas Tort Claims Act for tortuous conduct. The University of Texas System’s liability under the Act is limited. Under the Act, liability in cases of personal injuries or death is limited to a maximum amount of $250,000 per person and $500,000 for each single occurrence. The maximum amount of liability for injury to or destruction of property is $100,000 for each single occurrence.
Faculty members may elect to secure additional liability coverage on their own if the liability costs of their practice risk exceeding coverage available through the Texas
Tort Claims Act.
A sample of a liability coverage document can be found in Appendix D.
V. Disbursement
Qualifying faculty practice compensation will be distributed as follows: 50% will be distributed to the faculty member’s choice of disbursement options (either as supplemental salary or deposited into the faculty member’s discretionary account).
The remaining 50% will be split as follows: 25% disbursement to the School of
Health Professions Administrative and 25% to a discretionary account in the faculty member’s SHP department.
UTMB SHP faculty members who choose to participate in the Faculty Practice Plan can opt for one of two methods of disbursement
– deposits into discretionary
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account versus deposits into supplemental salary. The timing of salary payout will occur on a quarterly basis: November 1, February 1, May 1, and August 1. Earnings will be applied as soon as they are received.
A quarterly statement will be provided to the faculty member either by the respective departmental representative or the SHP Senior Financial Analyst. Delete: UTMBrelated clinical services qualify only for deposit into the discretionary account.
Funds must be in the office of the Dean so that they can be processed and approved by the second week of the month prior to disbursement.
A. Supplemental Salary: The faculty member can choose to have supplemental wages disbursed in a quarterly lump sum that increases monthly salary at the time of payout. These wages are subject to taxes as defined by IRS.
B. Discretionary Account: A discretionary account is an account supervised by a designated budget administrator within the faculty member’s department. A discretionary account can be used as a resource to fund select expenditures that support the teaching or practice activities of the faculty member and the
University community at large. The account is subject to UTMB’s guidelines and policies and may be restricted for use during times of financial hardships. Eligible expenditures appear in Appendix A below.
Faculty practice compensation may occur at a maximum of 10% of the faculty member’s salary as outlined in Section C of the Faculty Compensation Plan provided to each faculty member each year (Appendix C). The Faculty Compensation Plan is provided to each faculty member each year (Appendix C).
VI. Disbursement Sample
An example would be as follows: Faculty member Dr. Doe receives external Faculty
Practice funds from GoodHealth Corporation for Physician Assistant services of Jane
Doe, PA-C. The distribution would occur as follows:
Earnings received:
Faculty portion: account)
PA Dept portion:
SHS Administrative:
Total:
$1000
$500 (either as salary or deposited into discretionary
$250
$250
$1000
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VII. Guidelines for Expenditure Reimbursement
A. No FSRDP funds may be expended for the benefit of any single individual person or Member except herein approved
B. All requests for reimbursement must contain adequate and original documentation and must be signed by the person seeking reimbursement
All expenditures are subject to the Rules and Regulations of the Board of Regents of the U.T. System and applicable institutional regulations and procedures. This list of authorized expenditures may be periodically amended by action of the Executive
Vice Chancellor for Health Affairs.
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Appendix A
AUTHORIZED BUSINESS EXPENSES
Earnings from the Faculty Practice Plan may be expended according to the following guidelines ( Amended and Restated Bylaws of the University of Texas Medical
Branch at Galveston School of Health Professions FSRDP Faculty Practice Plan )
Authorized Business Expense
Malpractice insurance
Official travel, including registration fees
Maximum
U.T. System self-insurance rates
In accordance with U.T. System and Institution policy and limits
Faculty Development Leave
Uniforms or Lab coats
Membership Dues in Professional Scientific
Organizations, Faculty Clubs, Medical Center clubs, or equivalent
In accordance with Regents’ Rules and Regulation and
Institutional Policy
Through Institutional purchasing
In accordance with Institutional policy. Faculty clubs,
Medical Center Clubs or equivalent with President’s approval
Texas State Clinical License Fee, including Applicable
License
Medically-Related Educational Aids
Base Salary, Supplemental Compensation, and
Incentive Compensation
Purchase, maintenance and operation of equipment and operation of U.T. System facilities
Ordinary and necessary business expenses incurred by the Member in earning the professional fees charged by said member, excluding entertainment
Registration fees and tuition incident to attendance at meetings and courses as requested or approved by institution
Consultant fees and expenses, including guest speakers at official institutionally sponsored or approved meetings
Expenses incident to faculty or staff recruitment
Establishment or endowment of programs, professorships, or chairs
Support of academic programs and projects involving education, research or patient care
Institutional participation in community organizations or events
Official Institutional Functions and Official
Entertainment (Official entertainment is defined as business related events or expenditures which are of documented benefit to the Institution or The U.T. System.
Annual fee reimbursement only
In accordance with Institutional policy
In accordance with U.T. System and Institutional policy
In accordance with Institutional policy
In accordance with Institutional policy
In accordance with Institutional policy
In accordance with U.T. System and Institutional policy
In accordance with Institutional policy
In accordance with U.T. System and Institutional policy
In accordance with Institutional policy
In accordance with Institutional policy
In accordance with U.T. System and Institutional policy, prior presidential approval is required for any expenditure greater than $2,500. A quarterly report of all expenditures approved in this category shall be filed with the Executive
Vice Chancellor for Health Affairs.
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Appendix B
2010-2011
Faculty Member: John Doe
Rank: Instructor (N-T Trk Clinical) Non-Tenure Track
A. Core Salary Component
B. Specialty/Discipline Specific Component
Doctoral degree/Post-doc experience/ years of experience/market
$
$
40,000
15,000
Merit from Workload Document
Subtotal (A + B) Institutional Base Salary (IBS)
C. Incentive Compensation
$
$ 55,000
Maximum Merit Potential (7.5% of A + B)
1-3 SMART Goals (5% of A + B/goal
Completion)
$
$
$
4,125
2,750
5,500 Clinical practice maximum potential
10% of A + B
Total Compensation $ 67,375
I understand that these recommendations of the Chair depend on a positive operating margin for the department and the School of Health Professions.
______________________________________ _______________________
Date
______________________________________ _______________________
Chair Date
Additional payout not included in IBS: NRM payout on 10/1/10 for SMART goal completiion
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Appendix C
HEALTH AFFAIRS FORM - UTMB SCHOOL OF HEALTH PROFESSIONS
FACULTY COMPENSATION PLAN APPOINTMENT
INSTRUCTOR APPOINTMENT
Name: John Doe Date: April 12, 2020
MEMORANDUM OF APPOINTMENT, 2010 - 2011 The Board of Regents of The
University of Texas System has authorized your appointment to the following position(s) at The University of Texas Medical Branch:
Academic Title
Instructor (N-T Trk Clinical)
Tenure Status
Non-Tenure Track
Department Period of
Appointment
9/1/10 – 8/31/11
Percent Time
100
COMPENSATION
*Core Salary Component
Specialty/Discipline-Specific Component
Institutional Base Annual Salary
Estimated Incentive Payment (Not Guaranteed)
Estimated Total Compensation for this Period
$ 40,000
$ 15,000
$ 55,000
$ 12,375
$ 67,375
Fiscal Year
2011
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Appendix D
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